Fort McMurray Commercial Investment and Development

[Williell]

Hi All, I'd just like to introduce myself and hear your own thoughts on Fort McMurray, Alberta.

My name's Will Lavallee, I work as a commercial real estate associate at DTZ Barnicke, which I joined after spending some time beforehand as an analyst at a commercial real estate consultancy called Altus Group.

My mandate at DTZ Barnicke is industrial across Alberta's north, and then anything and everything commercial within the vicinity of Fort McMurray, Alberta, where I grew up and still help to run an industrial contracting business started with family.

I have my own thoughts on Fort McMurray's market for multifamily and other commercial subtypes, as someone from the community and in the business of commercial real estate, but I'd like to glean the thoughts of others active in the multifamily market and observing/pursuing opportunities in Fort McMurray today.

 

[Thomas Beyer]

The Fort McMurray (multi-family) market is overpriced and ready for a major downward correction. Budget a 6% cap with 20% lower rent and 10% vacancy, likely a price reduction of 20%-25% of peak prices.

Cold Lake, i.e. Fort McMurray II is better as there are more sustainable jobs, no fly-in, fly-out work camps, greener oilsands extraction based on SAGD and far lower prices.